MGNREGS Replacement News: Prime Minister Narendra Modi with Union Ministers Kiren Rijiju, Jitendra Singh and Arjun Ram Meghwal at Parliament House in New Delhi on December 1, 2025. Anil SharmaMGNREGS Replacement News: As the Union government moves to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) with a new Bill, it is worth recalling that the rural jobs scheme found itself shrouded in uncertainty during the early years of the first Narendra Modi-led NDA government too.
The UPA government tabled the Bill, originally called just NREGA, in Parliament in 2004, its first year in office. Both Houses passed it in August 2005 by voice vote. The scheme was introduced in February 2006.
At the time, the BJP supported the passage of the Act. Its criticism was more focused on the implementation of the scheme rather than its existence itself.
For instance, in a speech on July 31, 2006, BJP leader L K Advani said: “We too believe that 100 days of guaranteed employment in a year to any rural household for unskilled manual work is a very useful and necessary policy intervention in mitigating rural unemployment.” He said the UPA had essentially recast the Atal Bihari Vajpayee government’s Sampoorna Rozgar Yojana, a food-for-jobs prorgamme.
And on December 12, 2006, BJP’s M Venkaiah Naidu told Rajya Sabha that the scheme needed more transparency and accountability in its implementation, calling for rationalisation of work norms and wages.
But after the NDA government took over in 2014, MGNREGS found itself in the midst of controversy, with activists and Opposition parties accusing the government of trying to dilute it.
In 2014-15, the scheme’s allocation was slashed in the revised estimates to around Rs 31,000 crore from Rs 34,000 crore. In 2009-10, the scheme had an allocation of Rs 39,100 crore. In 2012-13, the allocation was Rs 33,000 crore.
After months of suspense over the MGNREGS, amid criticism from the government that it was wasteful and ineffective, Modi cleared the air in Parliament on February 28, 2015. The scheme would continue, he said, but as a “monument to the UPA’s failures”.
Modi told Lok Sabha: “I keep hearing talk that the government is planning to scrap MNREGA, or already has. My political sense tells me never to scrap MNREGA. Because MNREGA is a living memorial to your failures. Aur main gaaje-baaje ke saath iska dhol peet-ta rahoonga. MNREGA rahega, aan-baan-shaan se rahega aur gaaje-baaje ke saath duniya mein bataya jayega.”
As Congress members watched, Modi mocked the party, saying that under this scheme, it had to send people to dig pits 60 years after independence.
He piled on the sarcasm by adding that his government would add whatever is necessary to the scheme and would not subtract anything from it.
“Don’t worry… whatever has to be added, will be added. Whatever strength has to be given…we’ll give it. Because we want the people to know who has left these ruins… who forced you to dig these pits even after so many years,” he remarked, telling the Congress that it had “left its footprints” for the people to know and understand.
And a day after Prime Minister Modi’s barbs, the then Finance Minister Arun Jaitley gave a marginal hike to the scheme’s allocation from Rs 34,000 crore to Rs 34,699 crore, while promising to enhance the allocation by another Rs 5,000 crore if there is tax buoyancy.
“In spite of the consequential reduced fiscal space for the Centre, the government has decided to continue supporting important national priorities such as agriculture, education, health, MGNREGA, and rural infrastructure, including roads,” Jaitley said in his speech, adding that the government was “committed to supporting employment through MGNREGA”.